Japan-based Sumitomo has entered into an agreement to indirectly acquire a 12.5% stake in the 336MW Galloper offshore wind farm, located 27km off the coast of Sulkok in North Sea, UK.
The transaction is due for completion in the coming months and the financial details for the acquisition have not been disclosed.
The offshore wind farm is under construction and the total estimated cost of the construction is £1.5bn.
The equity holders of the wind farm include RWE Innogy UK, Siemens Financial Services, UK Green Investment Bank and Macquarie Capital. The project achieved financial close in October 2015.
Construction of the wind farm is expected to be completed and is scheduled for operations in 2018. The project shall have a life span of about 25 years.
The wind farm will have Siemens manufactured 56 wind turbines, each with a rated capacity of 6MW, which will be installed on monopile foundations.
Height of each turbine will be 180m and will have a rotor diameter of about 150m. The monopile foundations are expected to be installed in depths between 27m to 36 m.
Off-takers in UK will purchase the electricity produced at the wind farm under long-term power purchase agreements and it will be enough to power about 336,000 UK households.
When the wind farm starts its operations, it is expected to cut down carbon emissions to the extent of 480,000 tonnes per year.
So far, Sumitomo has invested in three offshore wind farms including 165 MW Belwind, 216 MW Northwind and 165MW Nobelwind, all in Belgium in September 2014.
At present, Sumitomo seeks to expand its presence in offshore wind in UK and across Europe. The agreement to acquire stake in the Galloper offshore wind farm can be considered as a move in that direction.
Image: Sumitomo signs agreement to acquire stake in Galloper offshore wind farm. Photo: Courtesy of xedos4/FreeDigitalPhotos.net.